Albania in Crisis: The Predictable Fall of the Shining Star

ISBN-10: 1840640707
ISBN-13: 9781840640700
Category: History (General)
Pages: 360
Language: English
Published: 1999
Publisher: Edward Elgar
Author: Daniel Vaughan-Whitehead

Description

At the beginning of the 1990's the first encouraging results on GDP growth combined with the fulfilment of international requirements led many to believe that Albania was a 'shining star' in Central and Eastern Europe. But in 1997 this progress was reversed by unprecedented institutional, political and social turmoil leading to a spiral of violence and chaos.

This book presents, for the first time, a comprehensive analysis of the different factors behind the 1997 political, economic and social upheaval in Albania. It shows that the crisis was both predictable and complex, and not simply a matter of a disgruntled population attempting to regain their money. Using extensive and detailed evidence Daniel Vaughan-Whitehead identifies the major reasons for the growing discontent and final explosion: - the increase in unemployment, collapse of industrial production, inefficiency of the banking system, limitations and drawbacks of foreign investment, failure of mass privatization, falling living standards, and rising poverty. He examines the consequences of the crisis at the enterprise level, by region, sector, industry and property form using a unique survey of over 1,000 enterprises. In conclusion he offers a series of policy recommendations with a view to regenerating production whilst avoiding a new social explosion in a destroyed economy, weakened by political instability and the conflict in Kosovo.

This unique book will be essential reading for all academics working in the area of transition as well as policymakers from international organizations involved in transition economies.

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